Industrial output rises despite world slowdown
Figures reveal a 13.5pc increase in October compared to last year
Published 10/12/2011 | 05:00
INDUSTRIAL output rose sharply in October, despite the economic slowdown.
The latest figures from the Central Statistics Office (CSO) show manufacturing output rose by 13.5pc in October compared to the same time last year. That's in spite of the global economic slow down.
Economists warned that monthly output tallies can be deceptive, because they are distorted by bulk pharmaceutical sales that can rise and fall quickly.
The latest figures show output is also up on a quarterly basis, suggesting the trend of growing output was sustained into the early autumn.
Seasonally-adjusted industrial output for the three months to the end of October was up 5.9pc compared to the preceding three months.
"Ireland's manufacturing sector has held up remarkably well. Industrial output figures can be quite erratic at the best of times.
"But based on the figures for the first 10 months of the year manufacturing production should be higher on average this year than in 2010," said Alan McQuaid of Bloxham Stockbrokers.
Overall industrial production was 12.1pc higher in October compared to the same time last year.
Manufacturing led the way, rising 6.2pc, over the same period.
The "modern sector" which includes high-tech products and pharmaceutical and is closely linked to multi-national companies recorded the best performance with growth of almost 20pc.
The "traditional" sector saw almost no growth, it includes food and drinks manufacturers, many Irish owned.
Average growth in 2011 is lagging well behind the 2010 rate, but that is no surprise given the dramatically worsening economic outlook around the world.
Mr McQuaid said the outlook for next year depends on what happens to the world economy and global demand, which looks fragile.
However, Ireland's focus area such as pharmaceutical that are relatively recession-proof, combined with improving competitiveness should help the country outperform its competitors, he said.